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National Rental Vacancy Rate Edges HigherOTTAWA, June 10, 2009 — The average rental apartment vacancy rate in Canada's 35 major centres1 increased slightly to 2.7 per cent in April 2009, from 2.6 per cent in April 2008, according to the spring Rental Market Survey2 released today by Canada Mortgage and Housing Corporation (CMHC). Completions of condominiums, which continue to attract renter households looking to move into homeownership are decreasing demand for rental housing. Also, some of the completed condos compete with rental units if they were purchased by investors who then rent them out. These two factors have put upward pressure on the vacancy rate,” said Bob Dugan, Chief Economist at CMHC's Market Analysis Centre. “However, this has been balanced by higher levels of demand for rental housing.” The results of CMHC’s spring survey reveal that the major centres with the lowest vacancy rates in April 2009 were Québec City (0.6 per cent), Regina (0.7 per cent), Winnipeg (0.9 per cent), Saguenay (1.1 per cent), and Trois-Rivières (1.1 per cent). With respect to British Columbia, only two centres had vacancy rates below two per cent; Victoria at 1.2 per cent and Vancouver at 1.9 per cent. At the other end of the spectrum, the major centres with the highest vacancy rates were Windsor (15.5 per cent), St. Catharines – Niagara (5.3 per cent), and Abbotsford (4.8 per cent). The highest average monthly rents for two-bedroom apartments in new and existing structures were in Vancouver ($1,154), Calgary ($1,106), Toronto ($1,093), Edmonton ($1,059), and Victoria ($1,043). Of all the major centres, these five were the only ones with average rents at or above $1,000. The lowest average monthly rents for two-bedroom apartments in new and existing structures were in Saguenay ($494), and Trois-Rivières ($512). Year-over-year comparison of rents can be slightly misleading because rents in newly built structures tend to be higher than in existing buildings. However, excluding new structures provides a better indication of actual rent increases paid by tenants. Overall, the average rent for two-bedroom apartments in existing structures across Canada’s 35 major centres increased 2.9 per cent between April 2008 and April 2009. Rent increases were larger in Saskatoon (15.5 per cent) and in Regina (11.4 per cent). CMHC’s spring Rental Market Survey also found that the average rental apartment availability rate in Canada’s 35 major centres was 5.0 per cent in April 2009, up slightly from 4.9 per cent in April 2008. A rental unit is considered available if the unit is vacant (physically unoccupied and ready for immediate rental), or if the existing tenant has given or received notice to move and a new tenant has not signed a lease. Availability rates were highest in Windsor (18.0 per cent), London (7.9 per cent), St. Catharines – Niagara (7.9 per cent), Guelph (7.0 per cent), and Sherbrooke (7.0 per cent). The lowest availability rates were in Winnipeg (1.4 per cent), Regina (1.8 per cent), and Victoria (2.5 per cent). As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country. 1 Major centres are based on Statistics Canada Census Metropolitan Areas (CMAs) with the exception of the Ottawa – Gatineau CMA, which is treated as two centres for Rental Market Survey purposes and Charlottetown, which is a Census Agglomeration (CA). 2 CMHC’s Rental Market Survey is conducted twice a year in April and October, to provide vacancy, availability and rent information on privately initiated structures in all centres with populations of 10,000 and more across Canada. Reports are released in June and December. The spring survey covers apartment and row structures containing at least three rental units, and unlike the fall survey does not report information on:
Methodology for Fall 2009 Rental Market SurveyCanada Mortgage and Housing Corporation (CMHC) conducts the Rental Market Survey(RMS) every year in April and October to estimate the relative strengths in the rental market. The survey is conducted on a sample basis in all urban areas with populations of 10,000 and more. The survey targets only privately initiated structures with at least three rental units, which have been on the market for at least three months. The survey collects market rent, available and vacant unit data from sampled structures. The survey is conducted by a combination of telephone interviews and site visits, and information is obtained from the owner, manager, or building superintendent. The survey is conducted during the first two weeks of April/October, and the results reflect market conditions at that time. CMHC’s Rental Market Survey provides a snapshot of vacancy and availability rates, and average rents in both new and existing structures. In October 2006, CMHC introduced a new measure for the change in rent that is calculated based on existing structures only. This estimate is based on structures that were common to the survey sample for the previous and the current Rental Market Survey. The change in rent in existing structures is an estimate of the change in rent that the landlords charge and removes compositional effects on the rent level movement due to new buildings, conversions, and survey sample rotation. The estimate of per cent change in rent is available in all Canada and Provincial Highlight reports. The rent levels in new and existing structures are also published. While CMHC publishes only those percent change in rents in existing structures which are statistically significant, changes in rents that one might calculate based on rent levels in new and existing structures may or may not be statistically significant. A letter code representing the statistical reliability (i.e., the coefficient of variation (CV)) for each estimate is provided to indicate the data reliability. Methodology for Secondary Rental Market SurveyCanada Mortgage and Housing Corporation (CMHC) conducts a survey of the Secondary Rental Market (SRMS) in September to estimate the relative strengths in the secondary rental market which is defined as those dwellings not covered by the regular RMS. CMHC has identified the following dwelling components to be included in SRMS:
The SRMS has three components which are conducted in selected CMAs:
All three surveys are conducted by telephone interviews. For the condominium apartment vacancy survey, information is obtained from the owner, manager, or building superintendent and can be supplemented by site visits if no telephone contact is made. For the other two surveys, information is collected from an adult living in the household. All surveys are conducted in September, and the results reflect market conditions at that time. CMHC publishes the number of units rented and vacancy rates for the condominium vacancy survey. For the condominium rent and household rent surveys, the average rent is published. A letter code representing the statistical reliability (i.e., the coefficient of variation (CV)) for each estimate is provided to indicate the data reliability. In 2009, rented condominium apartments were surveyed in the following CMAs: Vancouver, Victoria, Calgary, Edmonton, Regina, Saskatoon, Toronto, Ottawa, Montréal and Québec. Other secondary rental market units were surveyed in Abbotsford, Barrie, Calgary, Edmonton, Regina, Saskatoon, Halifax, Montreal, Ottawa, Quebec, St. John’s, Toronto, Kelowna, Victoria and Vancouver. Rental Market Survey (RMS) and Secondary Rental Market Survey (SRMS) Data ReliabilityCMHC does not publish an estimate (e.g. Vacancy Rates and Average Rents) if the reliability of the estimate is too low or the confidentiality rules are violated. The ability to publish an estimate is generally determined by its statistical reliability. As indicated earlier, CMHC currently uses the coefficient of variation (CV). Reliability Codes for Vacancy RatesCMHC uses CV, sampling fraction and universe size to determine the ability to publish vacancy rates. The following letter codes are used to indicate the level of reliability of vacancy rates: A — Excellent The following two tables indicate the level of reliability of Vacancy Rates: If Vacancy Rate is Zero (0) and sampling fraction less than 100% then the following levels are assigned:
Otherwise, the following table is used to determine the reliability level of vacancy rates:
*(0, 20] means sampling fraction is greater than 0% but less than or equal to 20%; others are similar Reliability Codes for Average RentCMHC uses the CV to determine the reliability level of the estimates of average rents and a CV cut-off of 10% for publication of average rents. It is felt that this level of reliability best balances the need for high quality data and not publishing unreliable data. The same codes are used to indicate the reliability of rent estimates. CMHC assigns a level of reliability as follows (CV’s are given in percentages): A — If the CV is greater than 0 and less than or equal to 2.5 then the level of reliability isExcellent. DefinitionsAvailability: A rental unit is considered available if the existing tenant has given, or has received, notice to move, and a new tenant has not signed a lease; or the unit is vacant (see definition of vacancy below). Rent: The rent refers to the actual amount tenants pay for their unit. No adjustments are made for the inclusion or exclusion of amenities and services such as heat, hydro, parking, and hot water. For available and vacant units, the rent is the amount the owner is asking for the unit. It should be noted that the average rents reported in this publication provide a sound indication of the amounts paid by unit size and geographical sector. Utilities such as heating, electricity and hot water may or may not be included in the rent. Rental Apartment Structure: Any building containing three or more rental units, of which at least one unit is not ground oriented. Owner-occupied units are not included in the rental building unit count. Rental Row (Townhouse) Structure: Any building containing three or more rental units, all of which are ground oriented with vertical divisions. Owner-occupied units are not included in the rental building unit count. These row units in some centres are commonly referred to as townhouses. Vacancy: A unit is considered vacant if, at the time of the survey, it is physically unoccupied and available for immediate rental. Definitions of Census Areas referred to in CMHC publications are as follows:A census metropolitan area (CMA) or a census agglomeration (CA) is formed by one or more adjacent municipalities centred on a large urban area (known as the urban core). The census population count of the urban core is at least 10,000 to form a census agglomeration and at least 100,000 to form a census metropolitan area. To be included in the CMA or CA, other adjacent municipalities must have a high degree of integration with the central urban area, as measured by commuting flows derived from census place of work data. CMAs and CAs contain whole municipalities or Census Subdivisions. October 2007, October 2008 and October 2009 data presented in this publication is based on Statistics Canada’s 2006 Census area definitions. Acknowledgement The Rental Market Survey and the Secondary Rental Market Survey could not have been conducted without the cooperation of the rental property owners, managers, building superintendents and household members throughout Canada. CMHC acknowledges their hard work and assistance in providing timely and accurate information. As a result of their contribution, CMHC is able to provide information that benefits the entire housing industry.
Renting in British ColumbiaGoverning or Regulatory Body Residential Tenancy Branch, Office of Housing and Construction Standards, Ministry of Forests and Range Name of Act / Regulations
Types of Housing/Living Arrangements Covered by the Provincial Legislation Residential premises including manufactured home parks and accommodations with exclusive possession by the tenants. Types of Rental Periods In British Columbia most tenancy agreements have a predetermined expiry date. The tenancy agreement can be for a fixed term or a period that relates to a calendar week, month, or year. Most tenancies are month to month. Is a signed lease required? Yes. British Columbia laws require a written tenancy agreement. Many fixed-term tenancy agreements are referred to as leases. A landlord is obligated to give the tenant a copy of the tenancy agreement within 21 days of signing. Is a signed move in/move out condition report required? Yes, for residential premises, but not for manufactured home sites. As of January 1, 2004 it is mandatory for landlords and tenants to conduct ingoing and outgoing inspections and complete ingoing and outgoing Condition Inspection Reports. If the reports are not completed, the landlord or tenant runs the risk of jeopardizing their security deposit. Deposits The maximum security deposit for residential premises allowed is ½ month's rent. If tenants pay more than ½ month's rent, they can deduct this overpayment from any rent owing. However, if the landlord allows pets they can also ask for an additional ½ month’s rent. This is called a “pet damage deposit”. This means that in this case the total combined deposits can be up to one month’s rent. Landlords can also require deposits for additional keys, garage door openers, etc. in addition to the security and pet damage deposits. Security deposits and pet damage deposits are not permitted for manufactured home site rentals. Key Money The landlord must not charge a fee for a key that is the tenant's only means of access. The landlord may charge a fee for additional or replacement keys. Post-dated Cheques Landlords may request post-dated cheques. A lease must specify an ending date with vacant possession (the date by which the tenant must vacate the premises). If no date is specified, the lease automatically converts to a month-to-month tenancy and all terms in the agreement remain the same. Terminating a Tenancy: Notice and Timing Prior to a fixed term tenancy agreement expiring, it is the responsibility of landlord and tenant to either re-negotiate terms or terminate the tenancy agreement. Tenants who give written notice to end a fixed term tenancy agreement prior to the expiry date may be held accountable for all costs the landlord incurs in re-renting including lost rent. Landlords may end a tenancy only for specified reasons as set out in the legislation and cannot end a tenancy simply because a fixed term has expired unless the language of the lease specifies the tenant will vacate at the end of the term. When a fixed term tenancy reverts to a month to month tenancy, the landlord cannot force a tenant to sign another lease or agree to another fixed term. When a lease is renewed, landlords and tenants may agree to the same or different terms. Early termination can be ordered by a dispute resolution officer where there are serious situations involving safety, cause or conduct. All other tenancies are ended: by the landlord on a Notice to End Tenancy form; on written notice by the tenant; or by written agreement between the parties. A tenant must give one calendar month's notice in writing to the landlord the day before the rent is due. If the landlord wishes to end a tenancy, one of the province's approved Notice to End a Tenancy form must be used.
Assignments and Sublets Unless a landlord consents in writing, a tenant must not assign or sublet a tenancy agreement. If a fixed term tenancy is longer than 6 months, or for a manufactured home site tenancy, a tenant may sublet or assign a lease. All information about the new tenant for the sublet or assignment must be in writing, and in the case of a manufactured home site tenancy, the request must be in the prescribed “ Request For Consent To Assign a Manufactured Home Site Tenancy Agreement” form. The landlord must have a valid reason to withhold consent. The landlord has the right to approve the assignment or sublet, but cannot arbitrarily withhold consent. Rent Increases: Notice and Timing British Columbia now has rent control. Landlords must use the approved form “Notice of Rent Increase” and give the tenant 3 month’s notice to increase rent. Tenants can not dispute the rent increase unless the increase is more than the allowable amount. In 2008 rent increases are capped at 3.7%. For manufactured home park tenancies, landlords can also recover costs due to increased utility fees and property taxes as long as increases are distributed proportionately among tenants. In this situation, landlords must provide tenants with copies of the receipts and tax notices that justify the rent increase. Late Rent Payments Rent is considered late if not paid on or before the first day of the rental period. Landlords may request reasonable charges for late payment, based on what the lease or tenancy agreement states. Evictions There are several reasons why a landlord may evict a tenant and the rules that apply to them differ. They are:
If disputed, the Landlord must prove through evidence that there is a valid reason to end the tenancy. If a tenant does not dispute the Notice to End Tenancy, then it is deemed that the tenant has accepted the end of tenancy. If tenant does not move, the landlord may apply for a dispute resolution officer's order of possession, which is enforced through the Supreme Court, by a bailiff. A dispute resolution officer’s decision or order is final and binding. It may be reviewed by the Residential Tenancy Office if the initial decision was obtained by fraud, if evidence arises that was not available at the time of the hearing or if a party was not able to attend because of an unforeseen circumstance, such as a bridge collapse. In addition, either party may petition the BC Supreme Court for a Judicial Review on the basis of an error in law, or an error in procedural fairness. Fine PointsPermitting Landlord Entry to the Premises (Times and Reasons) Landlords must give a minimum 24-hour up to a maximum of 30 days written notice stating the time and purpose of entry, unless either the tenant consents or there is an emergency. Non-emergency entry is allowed between 8 a.m. and 9 p.m. If notice is not served in person, it must be taped on the door or served in the mailbox and 3 days must pass before the landlord enters the premises. The Landlord may enter if a dispute resolution officer issues an order to enter. The tenant may refuse entry if either no reason is given or it is unreasonable according to the dispute resolution officer. May the tenant withhold rent for repairs? Withholding rent for repairs is not allowed unless the dispute resolution officer gives an order to do so. Tenants can deduct the cost of emergency repairs from rent owing. The tenant can also recover the amount through dispute resolution if they tried on 2 occasions to notify the landlord within a reasonable period about the emergency and were unsuccessful. Also, the landlord may take over the completion of emergency repairs at any time. Changing Locks If a tenant can prove the landlord entered the premises illegally, it is possible to apply to a dispute resolution officer for an order for a lock change (residential tenancies). With this order, the landlord will not have a right to a key until the tenancy ends, and may enter the premises only in accordance with the dispute resolution officer's order. Pets and Smoking May a landlord refuse to rent to a tenant who has pets or smokes? Yes, a landlord may refuse to rent to a tenant who has pets or smokes. If smoking and pets are allowed in the tenancy agreement, or the agreement does not address these issues, then they are permitted in the rental unit. If a no pets and no smoking clause is written into a lease and the landlord discovers that the tenant has a pet and/or smokes in the rental unit, is this grounds for the landlord to evict the tenant? Terms stating "no smoking and no pets" in the tenancy agreement signed by the tenant are legally binding as long as they specify the type of pets that are restricted, for example “no pets such as dogs or cats”. If a landlord discovers that the tenant is in violation of the rental agreement either by acquiring a pet, or by smoking, a written warning (called a breach letter) must be issued. The letter must state that the tenant must comply with the rental agreement, or the tenant will face eviction if they either do not get rid of the pet within a reasonable period of time, or if they do not stop smoking in the rental unit. The termination process cannot begin until the landlord has issued the breach letter. Related LinksResidential Tenancy Act Residential Tenancy Office (RTO) Publications and Reports Forms and Applications Security Deposit Interest Rates and Calculator Fact Sheets Sample Residential Tenancy Agreement Sample Manufactured Home Site Tenancy Agreement A Guide for Landlords and Tenants in British Columbia The Residential Tenancy Policy Guidelines BC Housing.org BC Non-Profit Housing Association Tenant Resource and Advisory Centre Tenant Survival Guide Co-operative Housing Federation of BC (CHF BC) BC Public Interest Advocacy Centre Information for Seniors B.C. Apartment Owners and Managers Association (BCAOMA) Rental Owners and Managers Society of BC (ROMS BC) Downtown Eastside Resident's Association (D.E.R.A.) Shelter Aid for Elderly Renters (SAFER)
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